In addition, Shangpin.com has been deeply favored by capital. It has won three rounds of financing within two years and raised nearly 100 million US dollars. Among them, investors include Xiaomi founder Lei Jun, domestic leader private placement. Morningside Capital, etc.
2, when the industry shuffles, the clues emerge
In the winter of 2011, luxury e-commerce also ushered in the industry’s winter. In December, Netease Shangpin announced the cessation of service; in January 2012, the product network announced that it was closed in less than three months; in March 2012, Zunku.com layoffs reduced wages, and even the employees who were laid off included the current Chairman and CEO. In the future, from 2012 to 2015, luxury e-commerce companies such as Zunyi.com, Jiapin.com and Huha.com announced their closure.
In this cold winter, the days of leading e-commerce seem to be not too good. In this year, Vipshop will seek transformation, and the main market will be transformed from first- and second-tier cities to third- and fourth-tier cities, and e-commerce companies facing the whole country will be transformed into vertical discount electric commodity stations belonging to third- and fourth-tier cities. In the beginning of 2012, Shangpin.com was pushed to the forefront due to rumors of layoffs. The number of employees has been reduced from 400 to 100. After the blessing of Gaochun Capital in 2014, Shangpin.com has not received a large investment.
3, a new round of shuffling began to spread to the giants
After a round of industry reshuffle, the rest is not satisfactory. With the emergence of consumption power after 8090, the brand side and e-commerce giants also saw the interests of this, the brand side seized the line, the e-commerce giant represented by Ali, JD.com besieged, the new round of luxury e-commerce The card started.
Since 2016, Vipshop’s revenue and users have continued to decline. Compared with the peak period of 2015, the market value of Vipshop will now be only one-third of the current year. In the same dilemma, there is Temple Library. As the only e-commerce company listed on the luxury market, the stock price fell 23% on the first day of listing in 2017. So far, the market value of the temple library is less than half of the peak period.
After the first round of reshuffle, Shangpin.com is not too good. Although Shangpin.com has attracted a large number of young consumers through fast fashion, the good days are not long.
20Product brands do not want to be authorized by e-commerce, have their own considerations. On the one hand, the discount of e-commerce will impact the offline price and brand positioning of luxury goods, and damage the interests of the brand; on the other hand, luxury brands have very high requirements for brand image and product display, and these requirements The e-commerce platform is difficult to meet.
In addition to quality issues, there are other factors that affect consumer access to e-commerce platforms. According to “China Luxury E-commerce Report 2019”, China’s online luxury goods sales in 2010 were only 5.3 billion US dollars, of which more than 42% of consumers expressed dissatisfaction with online shopping luxury goods. In addition to price and quality, high-end consumers will also value the consumer experience. In the physical store, consumers can enjoy VIP-level services such as private shopping guides, high-end drinks and food, and high-end lounges. To. Therefore, a large number of high-end consumers still tend to buy luxury goods in physical stores.
3, industry giants join, competition further intensifies
The dilemma of veteran luxury e-commerce has not stopped the pace of e-commerce giants. In 2017, Alibaba launched the luxury luxury platform LuxuryPavilion. At present, more than 111 luxury brands have successfully settled in Tmall. In October of the same year, JD.com added its own luxury channel TOPLIFE, which was acquired by Kaiyun Group and Burberry Group. Brand resources, after 10 months on the line, the number of brands settled reached 34.
The addition of e-commerce giants has undoubtedly intensified competition in the industry. In particular, Ali and JD. have been deeply involved in the e-commerce industry for many years, have certain credibility, and have realized the authorization of the brand, further weakening the competitiveness of the old luxury e-commerce.
In the future, where will luxury goods e-commerce go?
The shortcomings of operations, the embarrassment of funds, and the siege of the giants have caused luxury e-commerce companies to face the situation of being attacked by the enemy. Does that mean that this industry will decline?
From the market point of view, China is the largest luxury consumer market in the world today. The 2019 China Luxury Report released by McKinsey shows that in 2018, Chinese people’s luxury goods consumption at home and abroad reached 770 billion yuan, accounting for one-third of the world’s total luxury consumption, between 2012 and 2018. More than half of the global luxury goods market has increased from China. By 2025, the total consumption of luxury goods is expected to increase to 1.2 trillion yuan.
In the face of a huge consumer market, it is a pity to give up. Even if it is Shangpin.com, it also describes in the fact sheet that “the company continues to look for strategic investors”, which means that the company’s top management has not given up hope and is still seeking a way out.
The luxury e-commerce wants to go on, and returning to the heart is the first problem to be solved. As a platform for selling luxury goods, the core is undoubtedly the quality of products. In addition, considering the two rigid needs of merchandise display and consumer experience, luxury e-commerce should also get rid of oneWalking on the legs creates a new way of paralleling online and offline.
From the perspective of the capital market, the reason why luxury e-commerce is no longer favored by the capital side is that management dilemma is a very important reason. With the continuous improvement of the luxury e-commerce platform and the resolution of quality, licensing, and consumer experience, once the operation has improved, the funding difficulties may be solved.
Although there are giant coffers, but in the face of a huge consumer market, it is difficult for industry leaders to get a piece of it.
Jindong also announced that it will close the TOPLIFE platform from July 21, while Shangpin.com announced the closure. According to “Jing Ri Media”, Jingdong sold TOPLIFE to FARFETCH for US$50 million. In other words, in less than two years, Jingdong also fell.
So it seems that although luxury e-commerce encounters a difficult situation, the deadlock seems to have a way to crack, and they have not given up. The future may be difficult, but everything is just beginning.